An Alternative to Buying Bonds
Wednesday, August 18th, 2010
Larry MacDonald submits:
Investors often don’t like buying individual bonds because they are under the impression bonds can only be obtained in the over-the-counter market, where wide bid–ask spreads entail rather high transactions costs for all but large buyers. But there is a more transparent and less costly alternative if you don’t mind a smaller range of choices: exchange-traded bonds, otherwise known as trust preferreds.
